Government Housing Subsidy Ends for First and Second Time Home Buyers

With the government subsidy for both first and second time buyers of homes coming to a close this past April of 2010, the real estate market may be beginning to see its first glimpse of what the absence of this extra funding will mean in terms of sales and mortgage applications for American buyers in some locations.

Data on Friday June 4, 2010 was more optimistic than anticipated, not only with the ending of the tax credit, but in spite of it. The information concerning mortgage applications however, shows a more discernible downward trend. The applications began to sink by as much as 40% from May 2010, to the lowest point they have been at since April of 1997.

Conversely, refinancing seems to be on the upswing nationally, with a 2.4% growth during the last week of May. Attitudes toward buying and home-ownership have altered somewhat in light of the recent financial crisis involving the mortgage companies, and it would be folly to say that the market has not been affected, at least for the foreseeable future, by these changes.

The good news is that housing prices will begin to decline even more and as labor markets, wage growth, and the economy improve, buying a home will become more affordable for a group of people that may not have ever had a chance at home-ownership pre-decline.

In some areas this improvement has already started to take hold as closings were up significantly at Massachusetts based real estate attorney firm Crowley and Cummings. People who have the money and the credit, will still be buying homes, except that they will be in a better position to pay the mortgage payments by not having extravagant interest rates to pay, and by paying fair market value for their homes to begin with.



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Crowley and Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.